I'm not sure you're reducing your risk by staying in your market and altering your strategy.

But sellers say, since offer didn't include "&/or assigns," & because purchase agreement states: "neither this agreement nor any provision in it may be extended, amended, modified, altered or changed, except in writing Signed by Buyer & Seller," we cannot assign new Buyers without MUTUAL agreement.

That usually translates to more cash-flow (but not always), which in my opinion is better than tax savings.

Unfortunately, not all upgrades translate into higher rents or prices. 

Underwriting is also my strong suit and that's translated into some of the asset management duties as well. 

Yes, you need a new realtor, PM most likely, and lender... but you have translatable skills and can make this mind-shift much easier.  

Meanwhile, the mortgage is given under your name which screws up both co-mingling and alter-ego. 

The house work is your risk in the project (time, property alterations, money). 

In other areas, a pool might make absolutely no difference and won't add a penny to the property value.Although your garage conversion might add value to what you're trying to do, it might not necessarily translate to added property value.

And a good local real estate attorney probably helps with translating the lease into plain english for me to make an informed decision.